First time in ages as an active participant. The house behind me was being sold
http://www.somersoft.com/forums/showthread.php?t=37645
It seemed the only way I was going to get my hands on that land I wanted to extend my chook run was to buy the place, cut off the land, tart the house up and flog it - it would have been horribly negatively geared as a hold.
So prior to auction I negotiated a $5,000 deposit on exchange and a 3 month settlement period - with some access in between to start working on it.
I figured it might go for around $520-30K. That meant with purchasing costs and a reno, it would owe me about $600K. I would then cut off that land and the renovated house might be worth $550K i.e. the land would have cost me $50K. (In Sydney's inner west, that's a good price. And it would have increased my already large block to an unusually large one for the area)
There were a bout 10 active bidders, which surprised me. At $525K it was just me. And then one of those people who don't say 'boo' till the end popped up - she was by herself, around 30 years old. Bugger.
So it was me and her. I got to $555K and she went to $556K. The auctioneer tried to talk me into another bid, but I said: 'mate the place isn't worth the price it's at now.' (It was worth more to me than anyone else because of the opportunity it presented.) The other bidder didn't really like that comment.
After the auction I went up to her and said: 'Sorry for pushing the price up so much, I just wanted the land the garage was on.' She said: 'You're kidding?' For a second there I thought she was going to hit me.
I explained the scenario I envisaged and said: 'Now that you've paid way too much for a house that needs more work than you realise, let me know if you'd like some instant cash.' She seemed interested - well, at least she didn't hit me.
I also pointed out sort of casually that the existing derelict garage would have been built illegally and that she will have trouble rebuilding there because of a sewer main that is incorrectly positioned on the documents in the contract.
I reckon I'm still in with a chance. All renos run over budget and that place really does have a few problems. I'm sure a few months from now there will come a day when $50K in cash is pretty tantalising.
Scott
http://www.somersoft.com/forums/showthread.php?t=37645
It seemed the only way I was going to get my hands on that land I wanted to extend my chook run was to buy the place, cut off the land, tart the house up and flog it - it would have been horribly negatively geared as a hold.
So prior to auction I negotiated a $5,000 deposit on exchange and a 3 month settlement period - with some access in between to start working on it.
I figured it might go for around $520-30K. That meant with purchasing costs and a reno, it would owe me about $600K. I would then cut off that land and the renovated house might be worth $550K i.e. the land would have cost me $50K. (In Sydney's inner west, that's a good price. And it would have increased my already large block to an unusually large one for the area)
There were a bout 10 active bidders, which surprised me. At $525K it was just me. And then one of those people who don't say 'boo' till the end popped up - she was by herself, around 30 years old. Bugger.
So it was me and her. I got to $555K and she went to $556K. The auctioneer tried to talk me into another bid, but I said: 'mate the place isn't worth the price it's at now.' (It was worth more to me than anyone else because of the opportunity it presented.) The other bidder didn't really like that comment.
After the auction I went up to her and said: 'Sorry for pushing the price up so much, I just wanted the land the garage was on.' She said: 'You're kidding?' For a second there I thought she was going to hit me.
I explained the scenario I envisaged and said: 'Now that you've paid way too much for a house that needs more work than you realise, let me know if you'd like some instant cash.' She seemed interested - well, at least she didn't hit me.
I also pointed out sort of casually that the existing derelict garage would have been built illegally and that she will have trouble rebuilding there because of a sewer main that is incorrectly positioned on the documents in the contract.
I reckon I'm still in with a chance. All renos run over budget and that place really does have a few problems. I'm sure a few months from now there will come a day when $50K in cash is pretty tantalising.
Scott